Clyde issues a check payable to Discount Mart. Ethel, Discount's cashier, forges the store's indorsement and deposits the check in her bank account. Clyde's bank, Farmers State Bank, pays the check. Clyde can recover from

Question

Clyde issues a check payable to Discount Mart. Ethel, Discount's cashier, forges the store's indorsement and deposits the check in her bank account. Clyde's bank, Farmers State Bank, pays the check. Clyde can recover from​

Quizplus · Accepted Answer

Clyde can recover from the bank because the bank paid on a forged indorsement, which is unauthorized. The bank can then seek to recover the funds from Ethel, who committed the forgery.

Clyde Issues a Check Payable to Discount Mart